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SECT B: Future Earnings Multiples Likely To Compress Despite Cloud Contracts

Transition To SaaS Model Promises Long-term Revenue Stability

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SECT B
AnalystConsensusTarget
Not Invested
Published 15 Dec 2024

Update shared on 07 Dec 2025

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1Y
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7D
-6.5%

Analysts have modestly raised their price target on Sectra to SEK 207.50 from SEK 207.50, reflecting slightly higher long term assumptions for the discount rate and future earnings multiples while keeping fair value essentially unchanged.

What's in the News

  • Region Halland in Sweden signed a 7 year, SEK 37.5 million contract to add Sectra's digital pathology module, expanding its use of the company’s enterprise imaging platform and enabling AI supported cancer diagnostics (client announcement).
  • Sectra is introducing its built in Reporting solution for medical imaging to the US market, unifying image review and reporting in a single application with integrated AI to shorten turnaround times and reduce radiologist workload (product related announcement).
  • At RSNA, Sectra will showcase new AI driven workflow features across its enterprise imaging platform, including integrated reporting, AI as a Service, photon counting CT support, an education portal, and a cloud delivered research solution (product related announcement).
  • Sectra signed a USD 45.6 million contract to deliver its fully managed cloud service, Sectra One Cloud, to a multisite US healthcare system, initially covering radiology and breast imaging to enhance scalability and collaboration (client announcement).
  • Region Stockholm and Region Gotland will consolidate all hospital imaging into Sectra’s fully managed cloud based enterprise imaging solution, strengthening cybersecurity, reducing IT burden, and supporting integrated diagnostics across the regions (client announcement).

Valuation Changes

  • Fair Value: Unchanged at SEK 207.5 per share, indicating no material shift in the overall valuation outcome.
  • Discount Rate: Risen slightly from 6.16 percent to 6.19 percent, reflecting a marginally higher required return.
  • Revenue Growth: Essentially unchanged at around 13.39 percent, implying stable long term top line assumptions.
  • Net Profit Margin: Effectively flat at approximately 17.24 percent, suggesting no meaningful revision to profitability expectations.
  • Future P/E: Risen slightly from 56.34x to 56.40x, indicating a modestly higher assumed earnings multiple for the outer years.

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